Travelers 2011 Annual Report Download - page 229

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. EARNINGS PER SHARE
Basic earnings per share was computed by dividing income available to common shareholders by
the weighted average number of common shares outstanding during the period. The computation of
diluted earnings per share reflected the effect of potentially dilutive securities.
The following is a reconciliation of the income and share data used in the basic and diluted
earnings per share computations:
(for the year ended December 31, in millions, except per share amounts) 2011 2010 2009
Basic
Net income, as reported ...................................... $1,426 $3,216 $3,622
Preferred stock dividends ...................................... (1) (3) (3)
Participating share-based awards—allocated income .................. (11) (25) (26)
Net income available to common shareholders—basic .............. $1,414 $3,188 $3,593
Diluted
Net income available to common shareholders ...................... $1,414 $3,188 $3,593
Effect of dilutive securities:
Convertible preferred stock .................................. 133
Participating share-based awards—re-allocated income ............... —22
Zero coupon convertible notes ................................ ——1
Net income available to common shareholders—diluted ............ $1,415 $3,193 $3,599
Common Shares
Basic
Weighted average shares outstanding ............................. 415.8 476.5 563.2
Diluted
Weighted average shares outstanding ............................. 415.8 476.5 563.2
Weighted average effects of dilutive securities:
Convertible preferred stock .................................. 0.7 1.8 2.0
Stock options and performance shares ........................... 4.0 4.2 3.0
Zero coupon convertible notes ................................ —— 0.4
Total ............................................... 420.5 482.5 568.6
Net income Per Common Share
Basic .................................................... $ 3.40 $ 6.69 $ 6.38
Diluted ................................................... $ 3.36 $ 6.62 $ 6.33
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